FAQ help BinarEx Account How do I open a BinarEx account? You can open a free BinarEx Account online in less than five minutes, and acess your account 24 hours a day. Simply fill in your details on the BinarEx registration form and start trading after your BinarEx account is approved. What happens if I forget or lose my password? Use this form to reset your password and a new password will be sent to the email you used to register your account. How can I edit my account information? In order for you to edit your account’s information, simply click the “my profile” tab within the BinarEx trading platform’s main menu. After you access the “my profile” section and make any changes click “submit” for the changes to be saved. BinarEx Account Funding How can I deposit funds into my BinarEx account? To deposit funds to your BinarEx account, simply click on the Funding tab from within the BinarEx platform. Once you click funding from within the BinarEx platform you will be asked to choose your preferred payment method and to choose the amount you would like to deposit. Clicking on ‘proceed to secure checkout’ will lead you to an SSL protected page where you will be asked to fill in the details to your preferred payment method. Is there a minimum or maximum deposit amount? The minimum amount you can deposit into your BinarEx trading account is $250. The maximum amount per transaction is $10,000. How can I withdraw my money? In order for you to withdraw money from your BinarEx account, locate the withdrawal button at the bottom of the main funding page. Upon clicking it you will be asked to choose your desired amount to withdraw and a preferred payment method. Note that credit card withdrawals only allow the initial amount deposited, thus profits made following a credit card deposit will be sent directly to your bank account. Can I cancel a withdrawal request? Yes, you can. In order to do so, simply click the ‘withdrawal Requests’ tab in the funding and choose the withdrawal you would like to cancel and click “approve”. Where can I view my transaction history? To view your transactions history, simply click on the ‘transactions history’ tab in the funding’s lower menu. There you will find your deposits and withdrawals including failed deposits and canceled withdrawals. BinarEx Trading How much am I risking when I place a trade? All BinarEx contracts have strictly limited risk. The maximum possible profit and loss are displayed on the order ticket before you confirm each trade in the BinarEx platform. To open a trade, the maximum amount to risk on each trade must be available as collateral in your cash margin account. Otherwise, the trade won't go through due to insufficient margin. You can never lose more than the risk amount specified in each trade. This policy also means you'll never get a margin call since each trade has a pre-define risk level, so you can focus on your profit targets with peace of mind. What is a strike price? The strike price is the price that a fixed return options contract is based on when you initially place your trade, and remains fixed, when compared to the markets prevailing price which subsequently change. Profit and Loss is determined by comparing the strike price with the market’s subsequent price at time of expiration, and depending on the direction of the trade. When a buyer’s price and a seller’s price match, they can make a trade at the initial strike price, and then the subsequent price of the market at expiration determined the outcome of the trade. As the exchange, BinarEx executes transactions between buyers and sellers. What does buy and sell quantity mean? The buy and sell quantity that is shown in the BinarEx platform, displays the number of contracts available at that moment from traders who want to buy or sell at the prevailing or specified market price. When a buyer’s price and a seller’s price match, they can make a trade at that price and BinarEx executes the transaction acting as the neutral exchange intermediary for exchange members. What is the difference between a working order and an open trade? A Working Order is an order that has not yet been executed, meanwhile an Open Trade is the result of an order to open a new position that has been executed. Working orders may be contingent on either a specified time or under a specific condition - such as if the market reaches the price specified in the working order. All working orders are displayed within the Orders windows within the BinarEx platform. Open Trades are the result of orders to open new positions that have been executed and which results in open trades being established. When you have an Open Trade, the value of your open trade will go up and down based on the up and down movements of the underlying market and depending on the direction of your trade. What happens to my Open Trade at Expiration? At expiration, your trade will close automatically at the settlement price. With fixed return option, when the expiration is reached there will either be a fixed profit or a loss of the initial premium paid to open the trade. At this point, it is considered a closed trade and will move to your trade history. You can also choose to close your trade early on the available market price before the expiration time is reached. Security Is BinarEx secure? BinarEx uses the 128-bit SSL security system (Secure Socket Layer). This system is a digital encryption that protects all transactions and is a major security standard used by most financial institutions. About Binary Exchange What is Binary Exchange? Binary Exchange is limited-risk contracts based on a yes/no question about the market’s future price action. For example, “Will the price of Gold trade above $1,300 at 1pm today?” If a trader believed it would they would buy a gold contract with a $1300 strike price and 1pm expiration and the cost of the trade would be the premium paid (depending on the size of the trade). If the price of Gold is above $1,300 at 1pm they would earn a profit, whereas if the price was not above $1,300 their maximum loss is limited to the amount of the premium paid to open the trade. What do Binary Exchange consist of? Every Binary Exchange contract has four variables: * quantity – this is the size of the trade that will determine the potential profit or maximum loss * expiration – this is the specific time the options contract will expire with either a profit or no profit (loss = cost of trade). * strike price – this is the predicted price the market must reach or surpass by expiration. * direction – this determines the direction of the trade (buy or sell). These four criteria determine the profit or loss of a Binary Exchange contract at any given time. Traders simply decide on whether or not a market will reach (direction) or exceed a specific price value (strike price) by a predefined point in time (expiration), and then enter the market using a quantity (size) of Binary Exchange contracts. For example, a trader who expects the value of a market to increase has a bullish outlook and will chose a buy order (direction) to enter the market. Before placing the trade, the the size of (quantity) is chosen and this will determine the amount at risk, and the amount of time need must be also specified (expiration) for the market to reach the price (strike price). If the market reaches or exceeds the strike price at or before the expiration date, the trader will earn a profit on that trade; whereas if the market does not reach the strike price level the trade will result in a loss. Furthermore, you do not need to wait until expiration and can exit trades earlier, whether your trades are profitable or not. What are the benefits of the exchange trading model? In a traditional exchange, orders from buyers are matched with orders from sellers when the price of their orders match within a centralized order book of all clients’orders. In addition, designated market-makers (MM) on traditional exchanges such as the New York Stock Exchange (NYSE) help add additional liquidity using prices that are available to all exchange participants. BinarEx uses a similar approach to the exchange-traded model by matching clients’ buy and sell orders when their strike prices are the same.<br/>For example, the quantity of all binary contracts is priced between 0 and 100, for the purposes of calculating the risk/reward potential of each trade. This means that if a trader who is speculating that the price of gold will rise past a particular price level purchases a Binary Exchange contract with a quantity of $50 at a particular strike price, then a seller who expects the price of gold to fall from that same price will match the other side of the trade for the same quantity. If gold is higher at expiration, then the buyer has a total of $100 profit (the $50 paid and the $50 from the seller) resulting in a loss of $50 to the seller. Whereas if the price of gold is lower at expiration, then the seller earns the $100 total (the $50 paid and the $50 from the buyer) and the buyer realizes the $50 loss. Are Binary Exchange a form of spread-betting or CFDs? Binary Exchange are also comparable to spread-betting – which is a popular form of trading Contracts for Difference (CFDs), yet Binary Exchange are safer because of the imbedded risk-management inherent in every Binary Exchange contract – since risk is limited to the premium paid to open each trade. Glossary Definitions of commons BinarEx terms used for Binary Exchange What is A Asset/Underlying Asset Definition This is the financial instrument on which your fixed return option is based. Asset classes included forex, stock indices, and commodity futures. Individual assets are things like the EUR/USD pair, Gold, or the S&P 500 index. At the Money Definition When the underlying market price is equal to a fixed return option’s strike price, the fixed return option is “at the money.” At expiration, at the money options get $50 payout. B Binary Exchange An option on Binary Exchange is a financial option in which the payoff is either some fixed monetary amount or nothing at all. C Commodities Definition Commodities are actual things that are usually consumed and used, including metals like gold and silver, grains like corn and soybeans, and fuels like crude oil and natural gas. BinarEx offers Binary Exchange on these and other commodities. Contract The standard unit of a fixed return option. Currency Pair Any two currencies that can be traded against one another, such as the EUR to USD. E Expiry Price The price of the asset at the time the contract expires. This is the price that will determine trader success when entering into ‘call’ or ‘put’ contracts. Expiry Time The pre-determined expiry time at which the fixed return option contract expiry price will be determined. F Futures A type of indirect security, which involves a contract wherein a trader will agree to sell or buy a commodity at a specific time in the future. Forex Forex, short for foreign exchange, is the name for the currency market and includes the EUR/USD and AUD/JPY. I In The Money Definition When the underlying market price is greater than a fixed return option’s strike price, the fixed return option is “in the money.” At expiration, only in-the-money options get the $100 payout, so “in the money” refers to the option being profitable. Index, Stock Indices A stock index such as the S&P 500, FTSE, or Nasdaq is a weighted average of a selection of stocks from a certain sector of industry. It reflects the overall value of that sector. Initial Margin The required initial deposit in order to be able to enter a contract as a guarantee on future performance. O Out of the Money When the underlying market price is less than a fixed return option’s strike price, the fixed return option is “out of the money.” At expiration, only in-the-money options get the $100 payout, so an “out of the money” will expire at zero. S Settlement Value At expiration, a fixed return option contract is settled and determined to be in, at, or out of the money. Binary Exchange have a settlement value of 0, 50 or 100. Strike Price The strike price is the price level you think the market will be above or below at expiration. If you think the market price (expiration value) will be above the strike, you buy the option. If you think the market will be at or below the strike price, you sell the option. The market’s price at expiration is compared to the strike price to determine whether your fixed return option has settled in, at, or out of the money.